Holy Netflix! Cult stocks are making a comeback

Some of Jim Cramer's most frustrating stocks, the cult stocks, have strangely made a comeback recently. But thankfully, the market has been smart enough to keep the cults to a minimum and there haven't been many new cult stocks. Just the same old culties that Cramer has been steering clear of for years.

The "Mad Money" host defines cult stocks like Netflix, Amazon and Tesla as those stocks which are not valued traditionally. The stocks do not trade based on usual metrics such as earnings; they trade on how sexy the press release is from the company, how snazzy a car is or how many new subscribers it gets for TV streaming.

For someone who believes that numbers don't lie, it's just too much work to buy a stock that doesn't trade based on numbers. It's too darned difficult for Cramer!

Nevertheless, the cult stocks have picked up some game recently in the market.

Joe Klamar | AFP | Getty Images

Jeff Bezos, CEO of Amazon Inc.

Just look at Tesla, which took a beating after it reported a miserable quarter. Yet, the stock has managed to hang in there like a champ, clinging to the $200 level. It seems that investors don't care that it received several earnings guide downs and downgrades, making Cramer think that maybe growth has completely stalled.

How about the fact that the stock can somehow withstand a horrendous number such as the sale of only 10 cars in a month in China? This is especially ridiculous considering the fact that the company aimed to sell 30 percent of its cars there this year. Talk about resilience!

Cramer is not changing his view. He still thinks it's a great car, but a bad stock and he will not buy, buy, buy this one.

"I think that until we get a fully 100 percent battery car with similar long-drive characteristics from a major manufacturer that undercuts Tesla on price, this stock will continue to have adherents who believe that every decline is a gift to buy more stock. That's the cult of the buyer," Cramer said.

Not including Wednesday's midday reversal, Amazon has been pretty incredible, too. The cults keep believing that one day Amazon will report its Web service numbers and start making money. Cramer was surprised that it didn't jump over the $400 mark on Wednesday when analysts made a large price target increase.

"Netflix hangs in, too and I believe that it, like Amazon, is just resting for the next move up, not down," the "Mad Money" host said.

Just like Tesla and Amazon, investors are gobbling up as much Netflix as they can. And while Cramer is tempted to advise investors to sell the stock at these high prices, the fact is that the stock is still cheap considering its $28 billion market cap.

Investors are also taking notice of Facebook, which Cramer does not consider a cult stock because it has real earnings. Considering that both Facebook and Google are still not expensive, when the stocks break out when there is no news—that has the resemblance of a cultish run.

As for the last cult stock GoPro, Cramer says forget it. He thinks it as peaked at this point. And Alibaba? Cramer thinks the Chinese communist party has its hand on that one, and will only let it be cheap if they decide it will be cheap.

So, welcome back to the drawing board, cult stocks. The good news about these mysteriously sexy stocks is that Cramer doesn't see too many of them out there. He's been watching the same ones for years, and has learned to cope.

"We've dealt with them before, and we can deal with them again," Cramer said. "Maybe that's all there is to it?"